#GENIUSActPass The GENIUS Act, or Guiding and Establishing National Innovation for U.S. Stablecoins Act, has passed a key vote in the U.S. Senate with 68 votes in favor and 30 against. This bill aims to establish a regulatory framework for stablecoins in the United States, providing clarity and oversight for the industry.¹

*Key Provisions of the GENIUS Act:*

- *Reserve Requirements*: Stablecoins must be fully backed by U.S. dollars or comparably liquid assets.

- *Disclosure Requirements*: Issuers must publicly disclose their reserve composition monthly and undergo annual audits if they have over $50 billion in market capitalization.

- *Bankruptcy Protections*: The bill prioritizes claims of stablecoin holders over other creditors in the event of insolvency.

- *Regulatory Oversight*: The Act establishes a framework for federal and state regulation of stablecoins, with larger issuers subject to federal oversight.²

The bill's passage is seen as a significant milestone for the crypto industry, potentially paving the way for banks and tech giants to issue stablecoins and inject capital into the market. However, some Democrats, including Senator Elizabeth Warren, have expressed concerns over the bill's provisions and potential ties to President Trump's crypto ventures.³

*Next Steps:*

- The bill will now move to the House of Representatives for further consideration.

- If passed, it will provide a clear regulatory framework for stablecoins, potentially leading to increased adoption and growth in the market.